Should i become self employed?

[David Lee]

If the temp agency sub contract you, check what they require - you will probably have to provide your own PPE (steel toecaps, hi vis jacket and possibly safety hat. You should also have PLI that covers for the area of work (As Zonino says - you can offset all that against income to reduce your bill). If you are on the payroll that becomes the companies liability.

 

The nice thing about PAYE is letting somebody else do the tax return for you - (though it is easy if you are just a soletrader, no major equipment or goods being brought and sold - just income and expenses incurred to do the job).

 

At the end of the tax year you can take your p60's to the local Inland Revenue office if you think you have been overtaxed and claim a refund. (Many years ago, when I was a casual, I managed to get nearly a grand back. It took the guy a minute with the calculator and a couple of weeks for the cheque to arrive.)

 

I seem to have a rambled on bit so I would just say that IMHO you should stick to PAYE until somebody say they will only take you as a self employed person then you can do both.

 

Note that the IR are still saying that they are looking into the status of the self employed. Are we really self employed or employed on short term contracts. - The IR would prefer the latter I think. See here - http://www.whitelight.ltd.uk/resource/?p=freelance-guide

[zonino]

One of the reasons being HMRC get more money through NI because of employers contributions, also you can't use the taxes to reduce your tax liability (aka, if they deduct at source, they get the tax sooner, you can't use it to invest in the mean time)

 

also technically the Inland Revenue and Customs & Excise don't exist as seperate any more, its now all Her Majestys Revenue & Customs